| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #7363 | Closed | public | Multifamily | Les Sparks |
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A non-profit entity was recently told after their annual financial statement review by HUD that they were not allowed to pay for costs paid to a third party service provider who handles collection of tenant file information both at move-in and annual recertification. The information is scanned to the third party service provider by on-site staff and is checked by the service provider to ensure that information is complete and that information in HAP is accurate and complete. This used to be done in house and was included with salaries and considered front-line duties but is now being outsourced. HUD has stated that because it is being outsourced it is to be paid through management fees. Has anyone else come across this issue? How was it resolved? |
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From Les Sparks: This is the first time i have heard of this interpretation. I have many clients that use 3rd party service providers. They have never been told that this was disallowed. DO you have the specific letters from HUD regarding this? |